Electronic commerce consists primarily of the distributing, buying, selling, marketing, and servicing of products or services over electronic systems such as the Internet and other computer networks.
To be successful, an electronic commerce site should provide an enjoyable and rewarding experience to its customers. To provide a positive customer experience some web sites include personalized web sites, purchase suggestions, and personalized special offers as a way of substituting for the face-to-face human interaction found at a traditional point of sale. Delivering value to the customer is another key component of successful electronic commerce web sites.
Another factor in making an electronic commerce web site user friendly is to minimize the amount of information necessary to develop a price quote. One such system and method is disclosed in published US application US 2004/0128172A1 (published Jul. 1, 2004) ('172 application) that is assigned to applicant. The '172 application discloses a system and method capable of providing an estimated premium without extensive and repetitive questioning. The system and method disclosed in the '172 application utilizes unique assumptions to dramatically reduce the amount of information that must be provided by the customer. Once logged onto the website the customer may choose to engage in a fast quote process which utilizes assumptions, driver information, and vehicle information to assess the risk associated with insuring the customer and then calculates an estimated cost to insure.
Electronic commerce has facilitated the recent marketing trend of mass customization. Mass customization is a way of building and selling products such that the product features are broken down and offered to the consumer as choices. For example, if a computer manufacturer has twenty or so product features that make up every computer (RAM, disk space, processor speed, modem, operating system, etc.), the customer can pick and choose between all twenty features, resulting in a computer that is customized to that particular customer's needs. This concept can be applied to the sale of goods such as appliances, clothes, automobiles, etc; and the sale of services such as insurance coverage.
One way that sellers of products cater to their customer is by providing customers with the ability to customize the products to best suit their needs and budget. For example, DELL Computers is well known for its build to order business model that allows a customer to specify the features of the computer that the customer wants to purchase. DELL has implemented electronic commerce as a means for extending the reach and scope of its direct sales business model at a low marginal cost. DELL has automated product configuration, order entry, and technical support functions. When a user visits the DELL web site the user can select from a menu of products to purchase (e.g. desktops, notebooks, televisions, etc.). If the user selects “desktops,” the user is provided with a web page with a number of selections for desktop computers, (e.g. XPS PCs, Entertainment PCs, Basic PCs, etc.). If the user selects basic PCs the user is presented with a page listing a number of Basic PCs (e.g. DIMENSION 110 Basic High End, DIMENSION 110 Basic Mid Range, DIMENSION 110 Basic Core System, and DIMENSION 110 Entry Level PC), associated with each listing is a price and a specification. Also associated with each listing is a button (Customize It) that sends the user to another page that allows the user to select certain optional system components. Each optional system component has a price associated with it. Upon selection of the desired system components, the user is clicks on a “continue” button where the new price of the basic computer with the optional features is displayed. If the user wants to compare the prices between different combinations of components, the user has to enter the new combination and either print the results or note down the price for comparison. This arrangement does not provide the user with a simultaneous side by side display of prices for the first product selected and the customized product. Additionally the web site does not provide a breakdown display of the cost associated with each feature in the customized product. Also in the aforementioned site all users are presumed to be new purchasers, and no attempt is made to determine what the user's custom feature preferences are based on past purchasing habits.
Electronic commerce systems also exist where users can purchase insurance (e.g. auto insurance). One web site provides the user with a comparison of premiums from different insurance companies. The user goes thorough an extensive on-line questionnaire and is prompted to select the types of coverage, limits and deductibles. A web page is the displayed listing a number of insurance companies and the rates that they would charge for the selected insurance. The web page provides the user with the ability to modify the coverages by clicking on a “modify coverages button.” The user is then transferred to another web page where the user is prompted to enter the modified coverage information. Once that is entered the user clicks on a “yes give me a rate” button and is displayed a web page listing the insurance companies and the premiums for the modified coverages. This arrangement does not provide the user with the ability to easily add a new vehicle to existing coverage with an insurance company. The web site also fails to provide the user with a simultaneous display of the premiums for the first selected coverage and the modified coverage. Finally, the web site fails to provide the user with a breakdown of the prices of the features of the first coverage selected and the modified coverage.
There is a need to provide an online system that provides the user with a convenient way to compare the prices of a product and a customized product.
There is a need to provide a repeat customer with the capability to purchase new products without having to input repetitive data and preferences that are already in the possession of the seller.
There is a need to provide on-line real time quoting tools that provide the user with a convenient way to compare prices for products based on optional variables selected by the consumer, in a single screen.
There is a need to provide on-line purchasing tools that recognize established customers and provide established customers with a convenient way to receive price quotes without having to input information that is already available to the web site operator.
In web sites that offer insurance products, there is a need to provide a simple interface to facilitate adding coverage to a new vehicle to an insurance policy and providing an immediate premium quote.
In web sites that offer insurance products, there is a need to provide the user with the ability to customize the coverage for the new vehicle and provide a convenient way to compare the premiums for the first coverage selected and the customized coverage.